City of Memphis
A rendering of the proposed youth sports complex that will front Southern Avenue.
City leaders formally named the private development team that will lead the Fairgrounds redevelopment project Tuesday morning.
City leaders cleared a major hurdle to advance the plan in November with a positive vote on the project from the State Building Commission. At that time, though, commission leaders said they wanted another review of the plan. They wanted to ensure Memphis leaders could secure $61 million in private funds before they’d allow the city to issue $90 million in bonds for the city’s portion.
“If the money and the numbers do not work out, we will not move forward with the project,” Paul Young, the city’s director of Housing and Community Development, told the commission in November.
It was not immediately known Tuesday morning whether or not the city won that second approval from state officials. We’ll update this story with more information later today.
City of Memphis
A concept image of a new Fairgrounds.
However, a news release from Memphis Mayor Jim Strickland’s office said Tuesday his team had picked M&M Enterprises and Belpointe REIT to lead the redevelopment project.
“We’ve been working on this project for a while now, and I’m so pleased to have local talent stepping up and helping the city to transform this important piece of property,” Strickland said in a statement. “The underutilized Fairgrounds will be reimagined into a unique sports and entertainment destination for both Memphians and visitors.”
The project team will be led by local developer James Maclin, of M&M Enterprises. Maybe Maclin’s highest-profile project to date is the Broad Avenue mixed-use project he’s working on with Loeb Properties. Maclin is also involved in the redevelopment of the Racquet Club.
Belpoint is a real estate investment trust (REIT). These types of companies own many different types of real estate. Belpoint is based in Greenwich, Connecticut. A statement says the company is the first Opportunity Zone REIT registered with the securities and Exchange Commission (SEC).
“An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment,” according to the Internal Revenue Service.
The Fairgrounds is part of the University District Opportunity Zone.
City of Memphis
A pre-design rendering of the Fairgrounds redevelopment project.
In November, Young said the project would move through three phases. Phase one is complete, with Tiger Lane, improvements to Liberty Bowl stadium, and site work for phase two. The second part of the project would include the construction of the youth sport complex, which would front Southern on the south end of the Fairgrounds.
”The complex will be located on the southern end of the Fairgrounds, on the site of the former Libertyland Amusement Park,” reads the city’s statement Tuesday. “It will focus on indoor sports, including basketball, volleyball, cheer, gymnastics, wrestling, and indoor track and field; it is projected to open in the first half of 2021.”
Phase three of the project would begin within five years of the completion of phase two. Phase three cold cost up to $30 million and include “iconic” entrances and exits, improvements to the Pipkin building, expanded parking, and more.
Justin Fox Burks
As of November, the Mid-South Coliseum would remain mothballed under the plan. But Young told committee members in November that private funding to revive the building would emerge if the area around it were reactivated.
The plan also aims to redevelop the north end of the Fairgrounds fronting Central with a mixed-use development. That development would include 30,000 square feet of retail space and 80 hotel rooms.
“The mixed-use development will be privately funded, although the city will provide infrastructure improvements,” reads the statement. “The private development will generate sales tax revenues for the Fairgrounds Tourism Development Zone (“TDZ”) which will be the primary source of funding for the new Sports & Events Complex.
“Using the TDZ will allow the city to redevelop the Fairgrounds using sales tax revenues that would normally go to the state and without having to rely on general operating funds which are used for things like police and firefighter salaries or on the capital improvement program which is used for things like street repaving.”
